Reimbursement For Work Clothing: Taxable

In an April 17, 2019 Technical Interpretation, CRA was asked whether clothing reimbursements paid to maintenance employees were taxable benefits. Employees were not required to wear specific uniforms and were reimbursed based on receipts, to an annual maximum. CRA referred to Guide T4130 Taxable Benefits and Allowances, which states that clothing is generally a personal expense, except where either of the following applies: the employee is required to wear a distinctive uniform while carrying out…

September 12, 2019
Business – Taxes / Contractor / Corporate Taxes / Educational Taxes / Individual – Taxes / Personal Taxes / Professionals / Special Interest / Tax Planning

Special Work Site Allowance: Home Base Needed

In a January 29, 2019 Technical Interpretation, CRA discussed the criteria for tax-exempt allowances for board and lodging received for periods an employee was working at a special work site. To be a special work site, the following criteria must be met: the work performed at the location must have been of a temporary nature;the employee must have maintained a self-contained domestic establishment (SCDE) elsewhere which was used as their principal place of residence;the SCDE…

August 30, 2019
Business – Taxes / Corporate Taxes / Individual – Taxes / Tax Planning

Accelerated Depreciation: Federal Economic Update Changes

When the Federal Government released its Fall Economic Update on November 21, 2018 it primarily focused on changes to the first year of depreciation on most capital assets.

April 8, 2019
Business – Taxes / Contractor / Corporate Taxes

Canada Pension Plan (CPP) Changes: Costs and Benefits are Increasing

The CPP is beening enhanced. This means that both employees and employers are required to contribute more, but, retirement, survivor, and disability pensions will also increase.

April 1, 2019
Business – Taxes / Corporate Taxes / Individual – Taxes

Commentary on the 2019 Federal Budget

On March 19, 2019 the Honourable Bill Morneau, Minister of Finance, presented the 2019 Federal Budget, Investing in the Middle Class, to the House of Commons. No changes were made to personal or corporate tax rates, nor to the inclusion rate on taxable capital gains.

March 21, 2019
Business – Taxes / Corporate Taxes / Individual – Taxes / Personal Taxes / Special Interest / Tax Planning

Travel Expenses: Home to Work Site

Although it may be possible to deduct travel amounts against employment income, such amounts are often challenged by CRA.

February 21, 2019
Business – Taxes / Employee Discounts / Individual – Taxes / Personal Taxes / Tax Planning

Benefits Paid to Shareholder Employees: Are They Taxable?

The CRA is aware that owner-managers have an incentive to receive benefits deductible by their corporation which are non-taxable to the owner. In essence, this can be perceived as a method to extract profits out of a corporation without paying tax on it. As such, CRA is particularly vigilant to ensure that these benefits comply with the Income Tax Act and do not confer unfair advantages on owners. To start off, it must be established…

January 12, 2019
Business – Taxes / Tax Planning

2018 Year-End Tax Planning

A list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation (250-370-2191).

January 9, 2019
Business – Taxes / Individual – Taxes / Personal Taxes / Professionals / Tax Planning

2018 Tax Planning: Renumeration

Higher levels of personal income are taxed at higher personal rates, while lower levels are taxed at lower rates. Therefore, individuals may want to, where possible, adjust income out of high income years and into low income years. This is particularly useful if the taxpayer is expecting a large fluctuation in income, due to, for example, an impending maternity/paternity leave; large bonus/dividend; or sale of a company or investment assets. In addition to increases in…

January 8, 2019
Business – Taxes / Personal Taxes / Special Interest / Tax Planning

Active Business vs. Property Income: Music Royalties

A private corporation’s income from a specified investment business (SIB) is not eligible for the active business tax rates (varying from 10% to 31%, depending on a number of factors, including the total earnings from operations and the province or territory in which it is located). Rather, a corporate investment tax rate of around 50% is levied (again, it varies by jurisdiction). In a July 10, 2018 Tax Court of Canada case, at issue was…

November 28, 2018
Business – Taxes / Special Interest / Tax Planning